What does the Regular Savings Plan offer?
The Regular Savings Plan allows you to save as much as you want in a tax efficient way. The Regular Savings Plan combines tax-free saving, in addition to your tax-free ISA allowance, with tax paid so that your savings can work harder for you and not the taxman. It's a 10 year with-profits savings plan and anyone aged between 16 and 55 can invest.
The Regular Savings Plan gives your plan a starter bonus too, if you invest more than £30 a month - a tasty start to your investment.
Tax-free and tax paid savings
The Regular Savings Plan is a 10 year with-profits savings plan and you can save from as little as £15 a month and there's no limit to how much you can save.
No matter how much you invest, the first £25 of your monthly contributions will be invested completely tax-free in a tax-free policy. That's because under current law, you can save this amount tax-free with a friendly society. Tax-free means free of income and capital gains tax except for taxes on UK dividend income from UK shares.
The rest, if any, will be invested in a tax paid policy and will have the tax on any growth automatically deducted by Scottish Friendly. So if you invest £40 a month, £25 will grow tax-free and £15 will grow tax paid.
Whatever amount you decide to invest at the end of the life of your plan there will be no tax to pay, even for a higher rate taxpayer. Please remember if you cash in your plan early, you may not get back as much as you have paid in. If you cash in within the first 2 years, you will get nothing back.
Invest more than £30 a month and get extra back
If you choose to invest more than £30 a month we'll increase your guaranteed minimum cash sum. You'll need to make all of your payments over 10 years to get the full benefit of the increase. The increase is designed to reduce the effect of charges.
The more you save the greater your increase will be. For example save £30 a month and we'll increase your guaranteed minimum cash sum at the end of 10 years by £90.
A guaranteed minimum cash sum - plus potential bonuses!
Your plan is invested in our With-Profits fund which is managed across a range of assets for long-term growth, as well as providing a degree of security in the form of a guaranteed minimum cash sum. The 'How we invest your money' guide provides full details of how we go about managing your money.
Your actual guaranteed minimum cash sum will depend on your age and how much you pay in each month. At first, your guaranteed minimum cash sum will be less than your total payments into the plan, however it is designed to grow through the addition of bonuses.
The main long-term growth potential of your Regular Savings Plan is through the addition of regular bonuses and a potential final bonus.
The value of any regular and final bonus we add is based on how much profit we make, our actual charges and investment returns and how we decide to distribute this to members. Future bonuses are not guaranteed.
Life cover is automatically included
In addition, as a condition of the tax benefits, your plan includes a small element of life cover which ensures that on death your estate will receive at least your guaranteed minimum cash sum plus any locked in bonuses. The amount of life cover you get depends on your age, your health and the amount you pay in. You should ensure that you consider all the benefits under this plan for your own financial needs.
Look how much you could get back after 10 years
Projected returns on £40 a month invested over 10 years*.
Projected returns for illustration only. Remember your original investment is not guaranteed and you could get back less than the amounts shown.
Source: Scottish Friendly. Based on someone aged 40 next birthday at outset saving £40 a month (*a total investment after 10 years of £4,800), the premium is split £25 invested on a tax-free basis and £15 invested on a tax paid basis.
| Illustrated growth rates used for: | lower rate | middle rate | higher rate |
|---|---|---|---|
| Tax-free part of investment | 4.75% p.a. | 5.75% p.a. | 6.75% p.a. |
| Tax paid part of investment | 4% p.a. | 5% p.a. | 6% p.a. |
The annual rates of growth have been based on our reasonable estimate of potential returns and are lower than the maximum allowable investment growth assumptions. All the figures include the deduction of the actual charges assumed on the plan. These figures are only examples and the projected benefits are not guaranteed. They are based on premiums being paid for the full 10 years. They are not maximum or minimum amounts; what you get back depends on how your investment grows and the actual level of future bonuses. You could get back more or less than this.
Do not forget that inflation would reduce what you could buy in the future with the amounts shown. (For details on the effect of deductions on your plan, please see the 'How could the charges affect my investment' section of the key features).
Apply now
Applying is easy:
- Simply click on the Apply Online Now link, read the key features and 'How we invest your money' guide then complete and submit your application today.
- Or if you'd prefer to apply by post click on the Download Application Form link, to download an application form, read the key features and 'How we invest your money' guide then complete it and post it to:
Scottish Friendly Assurance, FREEPOST, Glasgow G2 4BR
When you start saving with us, you receive a gift. Choose either a £15 Marks & Spencer or iTunes vouchers. Don't forget to select which gift you would like on your application.
Or, you can request an information pack to be sent to you in the post. This pack includes further information on the Tax-Friendly Regular Savings Plan and an application form.
If you are in any doubt as to whether this product is suitable for you please contact your Financial Adviser.
If you apply for this product, for your records, we recommend you print or save a copy of this and any other relevant pages together with a copy of the key features and 'How we invest your money' guide.
